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A02122
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1590
Session of
2019
INTRODUCED BY OWLETT, CAUSER, M. K. KELLER, PICKETT, GREGORY,
PASHINSKI, FEE, CALTAGIRONE, SAYLOR, DeLUCA, MILLARD,
ZIMMERMAN, HERSHEY AND KAUFFMAN, JUNE 7, 2019
AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 11, 2019
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, establishing the Dairy
Investment Program and Dairy Investment Program Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 64 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
Ā§ 1552.1. Dairy Investment Program.
(a) Establishment.--There is established a program to be
known as the Dairy Investment Program. The program shall provide
financial assistance in the form of grants for projects located
within this Commonwealth that support the dairy industry.
(b) Eligible applicants.--The following entities may apply
for grants:
(1) A corporation, partnership, sole proprietorship,
limited liability company, cooperative or any other
commercial entity approved by the authority.
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(2) A private not-for-profit entity undertaking
agriculture-related activities that support the dairy
industry.
(3) A public school, private school or charter school.
(4) An accredited university, college, seminary college,
community college or two-year college.
(c) Eligible projects.--The following types of projects
shall be eligible for grants:
(1) Research and development projects that involve any
of the following:
(i) Identifying new food or beverage products using
milk or milk components.
(ii) Identifying pharmaceutical or industrial uses
for milk or milk components.
(iii) Extending the shelf life of milk and dairy
products.
(iv) Developing production and processing methods
that reduce the risk of foodborne illnesses in Grade A or
Grade B milk and dairy products.
(v) Developing new technologies allowing producers,
processors and distributors to provide consumers with
transparent, verifiable information on milk and dairy
products.
(vi) Developing specialized equipment for use in
organic production, value-added processing or marketing
of milk and dairy products.
(vii) Researching, developing and distributing best
management practices to enhance the workforce skills in
milk and dairy production and processing.
(viii) Developing specialized or innovative
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packaging for milk and dairy products that enhances the
flavor or appearance of the products or reduces the risk
of foodborne illnesses.
(2) Transitioning to certified organic production
projects, processing projects and distribution projects that
involve any of the following:
(i) Defraying costs of a third-party certification
audit conducted by an auditor accredited by the United
States Department of Agriculture.
(ii) Defraying costs of technical assistance to
producers or processors developing or implementing
organic system plans for milk or feed grains.
(iii) Defraying costs associated with the design of
product labeling to feature the United States Department
of Agriculture certified organic seal.
(iv) Developing signage or other tools by which a
producer transitioning to organic production methods can
provide notice to other producers, municipal employees or
the public of the application of pesticides near property
boundaries.
(v) Defraying costs of specialized equipment for
organic processing.
(3) Value-added processing projects involving any of the
following:
(i) A third-party feasibility analysis of the
economic, market, technical, financial and management
capabilities of a proposed project or project site.
(ii) Additional costs relating to food safety
licensing or certification incurred as the result of a
new or expanded value-added dairy facility.
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(iii) Capital costs to construct a new value-added
dairy facility or expand an existing value-added dairy
facility.
(iv) Costs incurred as a result of a new value-added
dairy facility or expanded value-added dairy facility
relating to any of the following:
(A) Site selection and development, permitting
or zoning.
(B) Compliance with Federal or State laws OR
REGULATIONS or municipal ordinances or regulations .
(4) Marketing projects that involve any of the
following:
(i) Domestic or international market research and
demonstration programs for milk and dairy products.
(ii) Defraying costs of technical assistance in
creating or expanding a cooperative or other shared
marketing arrangement, including mid-tier value chains.
(iii) Regional or local branding efforts serving
more than one producer or processor and complementing the
PA PreferredĀ® program.
(iv) Paid media advertising that intentionally
segments the marketplace and identifies a target audience
to influence consumer buying habits and behavior in favor
of milk.
(v) Developing on-farm tourism opportunities as a
potential source of additional revenue for a producer.
(vi) Distribution of specialized packaging for milk
and dairy products that enhance the flavor or appearance
of the products or reduce the risk of foodborne
illnesses.
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(vii) Promotional campaigns, including the pairing
of milk and dairy products with other Pennsylvania-
produced foods and beverages.
(d) Applications for grants.--
(1) An applicant may submit an application to the
authority requesting a grant in an amount not to exceed the
amount under subsection (f) for the type of project eligible
under subsection (c). The application shall be on a form
required by the board and shall include all of the following
information:
(i) The applicant's name and address.
(ii) The location of the project.
(iii) A description of the project.
(iv) An estimate of the costs associated with the
project and the goal to be achieved by carrying out the
proposed activities of the project.
(v) Any other information required by the authority.
(2) A $100 nonrefundable application fee made payable to
the authority shall accompany each application.
(e) Review and approval of applications.--
(1) The authority shall, in consultation with the
Department of Agriculture, review an application and evaluate
the application based on the following criteria:
(i) Whether the project incorporates at least 75%
Pennsylvania-sourced milk.
(ii) The extent to which matching funds are used or
leveraged.
(iii) Whether the project can be replicated for use
across this Commonwealth.
(iv) Whether the project includes a strategic plan
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for implementation.
(v) The inclusion of an itemized budget of all
costs.
(2) The authority may develop additional evaluation
criteria for each type of eligible project under subsection
(c).
(3) Grants shall be awarded to the extent funds are
available.
(f) Grant awards.--Grant awards shall be as follows:
(1) For grants under subsection (c)(1), an amount not to
exceed $100,000.
(2) For grants under subsection (c)(2), an amount not to
exceed $50,000.
(3) For grants under subsection (c)(3), an amount not to
exceed:
(i) Fifty thousand dollars for an on-farm or single
PRODUCER project.
(ii) Five hundred thousand dollars for a cooperative
processing plant or multi-producer project.
(4) For grants under subsection (c)(4), an amount not to
exceed $100,000.
(g) Requirements.--
(1) The requirements for the administration of the
program shall be as follows:
(i) A project shall require a 15% cash match of the
total project cost.
(ii) An application for a grant under this section
must be received by the authority no less than 60 days
before a board meeting where the application is
considered.
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(iii) The authority shall execute a grant agreement
between the board and a successful applicant before the
payment of a grant award.
(iv) A successful applicant shall maintain full and
accurate records for the project.
(v) A successful applicant shall submit to the
authority copies of all canceled checks or other records
verifying expenditures of grant proceeds.
(vi) A successful applicant shall submit to the
authority a final report of the project, including any
information as required by the board.
(2) The authority may establish additional requirements
for the program as the authority deems necessary to
administer the program.
(h) Restrictions and limitations.--
(1) Administration costs for a project shall not exceed
2% of a total grant award.
(2) An applicant may not commence work on a project
before receiving authority approval of the project grant.
Commencement of work prior to receiving authority approval
will result in a project application being ineligible for
funding consideration.
(3) A successful applicant may not make a substantial
change to an approved project without first obtaining
authority consent in writing.
(4) Any unused portion of a grant award shall be
returned to the authority.
(5) Grant awards may only be used for new projects
approved by the board.
(6) Grant awards may not be used for any of the
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following:
(i) Paying fees for securing financing.
(ii) Paying interest on borrowed funds.
(iii) Refinancing existing debt.
(iv) Paying for lobbying services.
(v) Paying fines.
(vi) Application preparation fees.
(7) The authority may establish additional restrictions
and limitations as the authority deems necessary to
administer the program.
(i) Account.--The authority shall establish the Dairy
Investment Program Account for use in awarding grants under this
section.
(j) Transfers.--Funds in the First Industries Program
Account shall be transferred to the Dairy Investment Program
Account as determined by the General Assembly. The General
Assembly may appropriate funds to the Dairy Investment Program
Account.
(k) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Cooperative." A for-profit or not-for-profit corporation
formed under 15 Pa.C.S. Pt. II Subpt. D (relating to cooperative
corporations) that is owned and governed by individuals who use
the corporation's goods and services and share any profits of
the corporation.
"Dairy product." A food or nonfood product made from milk
and other ingredients.
"Mid-tier value chain." Local and regional supply networks
that link independent producers with businesses, cooperatives or
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consumers that market a value-added dairy product in a manner
that enhances the profitability of dairy farms.
"Milk." A fluid secreted by the mammary glands of cows,
sheep and goats for human consumption and use and classified as
Grade A or Grade B with a current permit from the Department of
Agriculture of the Commonwealth.
"Organic." A farm or processing operation that in whole or
in part has been certified as organic or in transition to
organic by a third party accredited by the United States
Department of Agriculture. The term includes the production and
processing of milk and dairy products and the production of
certified organic feed grains for certified organic dairy
animals.
"Processor." An entity that pasteurizes or bottles milk for
sale or transforms milk into a value-added dairy product.
"Producer." A person, group or other entity that:
(1) owns or operates a farm in this Commonwealth that is
not less than 10 contiguous acres where the production of
milk occurs; and
(2) has an anticipated yearly gross income of at least
$1,000 $10,000 .
"Value-added dairy." The process of transforming milk into a
product of higher economic value in the marketplace for a food
use or nonfood use.
Section 2. This act shall take effect in 30 days.
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